Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Southern Home and Gardens sells approximately 38,000 roses per year. The cost of shipping is $45 per order. The holding cost is $4 per rose

Southern Home and Gardens sells approximately 38,000 roses per year. The cost of shipping is $45 per order. The holding cost is $4 per rose bush. It takes two weeks for an order to arrive. Weekly demand is 650 pounds of cheese with a weekly standard deviation of 42. Southern Home and Gardens would like to satisfy 85% (Z = 1.04) of their customers. Answer the following questions. (You must put the question letter beside it’s answer to get full credit.) 5 Point Bonus: Draw a graph of this data. What is the economic order quantity? What is the reorder point? How many backorders will you have each year? How many customers will not get a rose bush each order? Write a paragraph to explain all of the above calculations.

Step by Step Solution

3.53 Rating (156 Votes )

There are 3 Steps involved in it

Step: 1

A What is the economic order quantity We have given that Annual demand which is 38000 bags ordering cost which is 45 holding cost 4 per rose bush Now ... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Business Statistics

Authors: Robert A. Donnelly

2nd Edition

0321925122, 978-0321925121

More Books

Students also viewed these Law questions

Question

When might leaders be irrelevant?

Answered: 1 week ago

Question

=+c) What are the factors?

Answered: 1 week ago

Question

Determine miller indices of plane X z 2/3 90% a/3

Answered: 1 week ago